Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the quantity supplied of good X per year is Q1, the result is:

Refer to Figure 4-9. What area represents the deadweight loss after the imposition of the price floor?

A) F + G B) C + D + F + G C) C + D D) C + D + G

Adding the assumption of pure competition and complete flexibility of all prices and wages to the rational expectations hypothesis yields a theory that provides support for

A) passive policy making. B) active policy making. C) discretionary policy making. D) unemployment reducing policy making.